Question

In: Accounting

Assume a selling price of $95,000, a down payment of $20,000, and a mortgage at 10%...

Assume a selling price of $95,000, a down payment of $20,000, and a mortgage at 10% for 30 years. If the loan was for 25 years, what would be the difference in the total interest cost of the loan?

Solutions

Expert Solution


Related Solutions

How much of the third mortgage payment will go to pay down the principle? Home Price:...
How much of the third mortgage payment will go to pay down the principle? Home Price: $339,000 USD 15% down payment of selling price 25 year term loan with a 3% annual interest rate
The price of a new car is $32,000. Assume that an individual makes a down payment...
The price of a new car is $32,000. Assume that an individual makes a down payment of 25% toward the purchase of the car and secures financing for the balance at the rate of 7%/year compounded monthly. (Round your answers to the nearest cent.) (a) What monthly payment will she be required to make if the car is financed over a period of 48 months? Over a period of 72 months? 48 months $ 72 months $ (b) What will...
The price of a new car is $16,000. Assume that an individual makes a down payment...
The price of a new car is $16,000. Assume that an individual makes a down payment of 25% toward the purchase of the car and secures financing for the balance at the rate of 7%/year compounded monthly. (Round your answers to the nearest cent.) (a) What monthly payment will she be required to make if the car is financed over a period of 36 months? Over a period of 72 months? 36 months     $ 72 months     $ (b) What will...
A borrower on a conventional mortgage makes a 25% down payment. With that amount of down...
A borrower on a conventional mortgage makes a 25% down payment. With that amount of down payment, she will be required to obtain ________. A.        FHA insurance B.         VA insurance C.         private mortgage insurance D.        GNMA payment guarantees E.         none of the above
Amortize a 30-year mortgage for a $200,000 house cost with a 20% down payment. The mortgage...
Amortize a 30-year mortgage for a $200,000 house cost with a 20% down payment. The mortgage interest rate is 4.125%. How much is the monthly payment? How much will the borrower pay in total interest?
Assume you are offered a $20,000 annual payment, made quarterly (m =4). Payments begin in 10...
Assume you are offered a $20,000 annual payment, made quarterly (m =4). Payments begin in 10 years and last for 25 yrs. Payments grow at an annual rate of 4.0%. If you require 12% discounted quarterly (m=4) to make the investment, what is the maximum price you would be willing to pay today?
The Turners have purchased a house for $200,000. They made an initial down payment of $20,000...
The Turners have purchased a house for $200,000. They made an initial down payment of $20,000 and secured a mortgage with interest charged at a rate of 6.2%/year, compounded monthly, on the unpaid balance. Assume the loan is amortized over 25 years. (a) What monthly payment will the Turners be required to make? (b) What will be their total interest paid over the 25 years? (c) What will be their equity disregarding depreciation after 5 years?
Mortgage lenders require the borrowers to make a 20% down payment. Otherwise, private mortgage insurance (PMI)
Mortgage lenders require the borrowers to make a 20% down payment. Otherwise, private mortgage insurance (PMI) is often required by mortgage lenders when the borrowers have less than a 20% down payment.1 Explain what type of asymmetric information problem these requirements help to solve?
You put 20% down on a home with a purchase price of $250,000. The down payment...
You put 20% down on a home with a purchase price of $250,000. The down payment is thus $50,000, leaving a balance owed of $200,000. A bank will loan you this remaining balance at 3.91% APR. You will make monthly end-of-the-period payments with a 30-year payment schedule. What is the monthly annuity payment under this schedule?
You are buying your first condo for $220,000 and are making a $20,000 down payment. You...
You are buying your first condo for $220,000 and are making a $20,000 down payment. You have arranged to finance the remaining amount with a 30-year monthly payment amortized mortgage at a 5.75% nominal interest rate. What will your monthly payments be? a.   $1,167.15 b.   $1,900.88 c.   $1,200.93 d.   $1,962.70 e.   $1,324.02 f.    $2,100.04 What is the estimated payoff on the mortgage question above after you have paid for 10 years? Show how you obtained the mortgage balance using Excel...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT